Nikkei Ends Positive
The Nikkei ended positively. The Nikkei closed up 194 points, or 1 percent at 19 698. Strengthening the Nikkei with investors awaited the expected economic indicator data strengthened.
The results of economic indicators also recorded positive results.
Japanese markets closed in positive territory as investors awaited the latest update of the data gross domestic product (GDP) of the third quarter, the broadest measure of economic health, and machinery orders figures.
Reuters reported that Bank of Japan Governor Haruhiko Kuroda said on Monday there was no need for further stimulus from the implementation of a negative deposit rate – following in the footsteps of the European Central Bank (ECB) – to spur lending. He said the central bank’s asset purchase program has been stored in low-cost loans.
Related to this export-oriented stocks rose with the weakening yen. Shares of Toyota, Sony, Sharp, and Canon closed up between 0.16 percent to 1.23 percent.
Data Coincident Index Prel October, in the position of 114.3, an increase from the previous results at 112.3.
Leading Economic Index Data Prel October, baerada on the position of 102.9, an increase from the previous results at 101.6.
Takata shares closed down 5.5 percent after Japan’s transport ministry on Friday ordered automakers to gradually abandon the use of air bag inflators Takata in mid 2018. A large number of vehicles were recalled in the United States and elsewhere because of damage resulting in injury to a passenger airbag and some deaths.
As for Nikkei futures was observed to stagnate, was observed to be in a position of 19.750, remained from the previous trading at 19.460.
Technically, the index on the trading session today, Tuesday (12/08) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first support level 19600 and 19550. If it fails at 19 660, then the next index is expected to tend to retest the resistance level that is 19 690 and continued until the possibilities are in the area 19 740.
Yen Gains Since Economy Began to Improve
Observed Yen strengthened against the US dollar after the release of a Japanese fundamental reports this morning.
Yen seen the support for natural strengthening against some major currencies as the economic recovery in Japan. In an official statement released by the Ministry of Finance this morning states that the current account surplus in Japan increased, the seasonally adjusted 1.49T 0.78T in October than in September.
At the same time, the official report released by the Office of the Cabinet Office stated that Japan’s gross domestic product growth increased by 0.3% in the third quarter after falling by 0.3% in the previous quarter.
Meanwhile, the official report released by the Bank of Japan said that Japan’s bank lending has risen by 2.3% in November after gaining 2.5% in October.
Technically, the trading session today, Tuesday (12/08), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 122.75 and 122.10 maximum. Meanwhile, if the Yen is able to break and hold above 123.27, then another alternative scenario the Yen chance to test the resistance at 123.50 and 123.90 area.
Gold Weakens As High As Dollar
Gold fell in the US trading session on technical correction after strong gains noted Friday that hit two weeks.
Nymex crude oil prices traded below $ 38 per barrel. The next target would be at $ 33.20, the lowest 2009. If the price of oil is difficult to stop the decline it will be very difficult for most other raw commodity market to get sustained gains strength.
The US dollar index turned up about half of the huge losses suffered since last Thursday while the euro currency does not seem too strong to sustain gains after monetary easing from the ECB last week.
There are no major economic news to move the market on Monday. FOMC meeting next week will be the main focus. The majority of analysts believe that the Fed will raise US interest rates for the first time in nine years at a meeting on December 15 to 16.
Technically, gold in today’s trading session Tuesday (12/08) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1065.33 and re-test the maximum level of 1060.73. However, if the price of gold is able to break and hold above 1071.90, the predicted gold prices could potentially test Resistance ie, 1074.40 and 1079.72.
